
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:**Mastery Problem: Petty Cash Transactions**
**Instructions:**
Turner Excavation maintains a checking account and has decided to open a petty cash fund. The following petty cash fund transactions occurred during July:
- **July 2:** Established a petty cash fund by issuing Check No. 301 for $100.
- **July 5:** Paid $25 from the petty cash fund for postage. Voucher No. 1.
- **Paid $30 from the petty cash fund for delivery of flowers (Miscellaneous Expense). Voucher No. 2.**
- **Paid $20 from the petty cash fund to repair a tire on the company truck. Voucher No. 3.**
- **Paid $22 from the petty cash fund for a newspaper advertisement. Voucher No. 4.**
- **July 13:** Issued Check No. 303 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.)
- **July 20:** Paid $26 from the petty cash fund to reimburse an employee for expenses incurred to repair the company truck. Voucher No. 5.
- **Paid $12.50 from the petty cash fund for phone calls made from a phone booth. Voucher No. 6.**
- **Paid $25 from the petty cash fund as a contribution to the YMCA. Voucher No. 7.**
- **July 31:** Issued Check No. 308 to replenish the petty cash fund. (Total and rule the petty cash payments record. Record the balance and the amount needed to replenish the fund in the Description column of the petty cash payments record.)
**The following additional transactions occurred during July:**
- **July 5:** Issued Check No. 302 to pay office rent, $650.
- **July 15:** Issued Check No. 304 for office equipment, $525.
- **July 17:** Issued Check No. 305 for the purchase of supplies, $133.
- **July 18:** Issued Check No. 306 to pay attorney fees, $1,000.
- **July 30:** Issued Check No. 307 to pay newspaper for an advertisement, $200.20.
**Required:**
1. Record the petty cash transactions in a petty cash payments record.
2. Make all required general journal entries for the cash
![**Educational Website Transcription**
---
**Instructions:**
**Required:**
1. **Record the Petty Cash Transactions:**
- Record all petty cash transactions in a petty cash payments record. The petty cash fund was established and replenished twice during July.
2. **Journal Entries for Cash Transactions:**
- Make all required general journal entries for the cash transactions.
- Note: The petty cash fund was established and replenished twice during July.
3. **Bank Statement Reconciliation:**
- The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 20 for $2,350.
- The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense but was incorrectly entered on the check stub and in the journal as $650.
- Prepare a bank reconciliation and make any necessary journal entries as of July 31.
---
**STATEMENT:**
**Merchant's National Bank**
- **Account Number:** 1632475
- **Statement Date:** July 31, 20–
- **Page Number:** [Blank]
**Customer Information:**
- **Turner Excavation**
- 220 Main Street
- Oakhurst, NJ 07755-1461
---
**Details:**
- **Beginning Balance:** $1,250.25
- **Deposits and Credits:** 1 transaction, totaling $3,500.00
- **Withdrawals and Charges:** 6 transactions, totaling $1,512.50
- **Resulting Balance:** $3,237.75
---
**Transaction Register:**
| Date | Description | Withdrawals/Charges ($) | Deposits/Credits ($) | Balance ($) |
|-------|------------------|-------------------------|----------------------|-------------|
| 7/1 | Beginning Balance| | | 1,250.25 |
| 7/5 | Check No. 301 | 100.00 | | 1,150.25 |
| 7/8 | Check No. 302 | 655.00 | | 495.25 |
| 7/9 | Deposit | | 3,](https://content.bartleby.com/qna-images/question/5f418503-edb6-47a4-9352-eb73e8116075/a1f44648-13ef-4d79-9e63-a76aacf7e2c6/kd2hbz_thumbnail.jpeg)
Transcribed Image Text:**Educational Website Transcription**
---
**Instructions:**
**Required:**
1. **Record the Petty Cash Transactions:**
- Record all petty cash transactions in a petty cash payments record. The petty cash fund was established and replenished twice during July.
2. **Journal Entries for Cash Transactions:**
- Make all required general journal entries for the cash transactions.
- Note: The petty cash fund was established and replenished twice during July.
3. **Bank Statement Reconciliation:**
- The bank statement below was received in the mail. Deposits were made on July 6 for $3,500 and on July 20 for $2,350.
- The book balance on July 31 is $4,331.55. Notice the discrepancy in Check No. 302 that cleared the bank for $655. This check was written on July 5 for rent expense but was incorrectly entered on the check stub and in the journal as $650.
- Prepare a bank reconciliation and make any necessary journal entries as of July 31.
---
**STATEMENT:**
**Merchant's National Bank**
- **Account Number:** 1632475
- **Statement Date:** July 31, 20–
- **Page Number:** [Blank]
**Customer Information:**
- **Turner Excavation**
- 220 Main Street
- Oakhurst, NJ 07755-1461
---
**Details:**
- **Beginning Balance:** $1,250.25
- **Deposits and Credits:** 1 transaction, totaling $3,500.00
- **Withdrawals and Charges:** 6 transactions, totaling $1,512.50
- **Resulting Balance:** $3,237.75
---
**Transaction Register:**
| Date | Description | Withdrawals/Charges ($) | Deposits/Credits ($) | Balance ($) |
|-------|------------------|-------------------------|----------------------|-------------|
| 7/1 | Beginning Balance| | | 1,250.25 |
| 7/5 | Check No. 301 | 100.00 | | 1,150.25 |
| 7/8 | Check No. 302 | 655.00 | | 495.25 |
| 7/9 | Deposit | | 3,
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